Part of the reason the housing market has begun its, albeit slow, recovery is due to more lenders accepting short sales in lieu of foreclosures. Although the market isn’t necessarily healthy, a short sale saturated market beats a foreclosure saturated market any day. In fact, there is much to be gained for homeowners looking to score a good deal, but it comes with considerations.
Making It Work
Buying a short sale isn’t for the faint of heart. It takes a lot of effort and patience to successfully navigate the process on the part of the both the seller and the buyer. However, you can get your dream home for a great price if you follow a few tips:
Best offer — unlike buying a home in a traditional sale, submitting a bid on a short sale should be your best and highest offer possible. There is very little room to negotiate in a short sale, and the bank is likely to reject any offer that is “low balled”. Remember that the short sale is already likely to be listed far less than fair market value, so going in at the highest you are willing to pay is your best strategic move.
Clean offer — when buying a short sale it is important to remember who holds the power, the lender. This means that they have the power to accept or reject on offer for any reason they see fit, including minor things like asking for closing costs assistance, financing conditions or the like. When submitting your bid on a short sale, present the cleanest offer possible that does not require any additional effort on the part of the lender.
While it is important to put your best foot forward, always be smart about purchasing a home. Don’t enter a contract you are not comfortable with. Home inspections and financing a budget friendly amount is important, so don’t force a bid on a home that may be out of reach because of the lender’s standards.